Question

Hayaram’ is a famous chain selling a large variety of products in the Indian market. Their products include chips, biscuits, sweets and squashes. It charges a comparatively higher price than its competitors as it sells quality products. Besides, it offers regular discounts to its customers and easy credit terms to its retailers. It has five of its own retail shops. It also sells its products through various grocery stores so that the products are made available to customers at the right place, in the right quantity and at the right time. It regularly uses different communication tools to increase its sales.

The above para describes the combination of variables used by Hayaram to prepare its market offering.

1. Identify the variables of marketing.   (1)
2. Enumerate the tools of promotion.   (2)
3. What are the two decisions involved in physical distribution?   (2)
4. Differentiate between Selling and Marketing.   (3)

Answer 1

1. Product, Price, Physical distribution and Promotion.
2. Advertising, Personal Selling, Sales Promotion and Publicity.
3. The two decisions involved in physical distribution are:
   1. Decisions relating to channels of distribution.
   2. Decisions relating to the physical distribution of goods, such as order processing, inventory control, warehousing and transportation.
4. 
   

   	Selling	Marketing
   1.	Focuses on pushing products to customers to make a sale.	Focuses on identifying and satisfying customer needs.
   2.	Emphasis on short-term sales and persuasion.	Emphasis on building long-term customer relationships.
   3.	Starts after the product is made, with the goal to sell what the company produces.	Starts before the product is made, with the goal to make what customers want.